2018 (3) TMI 655 - AT - Customs

Tribunal upholds Anti-Dumping duty, orders re-examination of margins for Indian importer and Chinese exporters

M/s Jiangsu FAW Foundry Co. Ltd., M/s Inox Wind Limited, M/s Dalian Huarui Special Transmission Equipment Co. Ltd., M/s Dalian Huarui Heavy Industry Casting Co. Limited, M/s Bradken India Pvt. Ltd. Versus Union of India/DA

M/s Jiangsu FAW Foundry Co. Ltd., M/s Inox Wind Limited, M/s Dalian Huarui Special Transmission Equipment Co. Ltd., M/s Dalian Huarui Heavy Industry ... Issues Involved:1. Scope of Product Under Consideration (PUC)2. Imposition of Anti-Dumping (AD) Duty3. Status and Scope of Domestic Industry (DI)4. Calculation of Dumping Margin and Injury MarginIssue-Wise Detailed Analysis:1. Scope of Product Under Consideration (PUC):The appellants contested that the Designated Authority (DA) improperly expanded the scope of the product under consideration (PUC) during the anti-dumping investigation. They argued that the initial notification for investigation mentioned 'Castings for wind operated electricity generators,' but the DA included various casting parts and components in the final findings, which they claimed were not initially covered. However, the Tribunal found that the Initiation Notification dated 01/02/2016 clearly and elaborately defined the scope of PUC, including all castings, whether machined, in raw, finished, or sub-assembled forms, meant for wind-operated electricity generators. The Tribunal concluded that there was no ambiguity or expansion of scope by the DA, dismissing the appellants' claim as factually incorrect.2. Imposition of Anti-Dumping (AD) Duty:The appellants argued that there was no injury to the domestic industry (DI) as the DI had increased sales and there was no clear calculation of the dumping margin. They claimed that the principles laid down in Annexure-II of the AD rules were not followed. The Tribunal examined the final findings and noted that the DA had categorically recorded the dumping margin and applied Rule 11 of the AD rules read with Annexure II to determine the injury. The DA's analysis showed that the DI suffered substantial losses and negative returns on capital employed during the material period, indicating significant injury due to dumping. Therefore, the Tribunal upheld the imposition of AD duty, finding the appellants' claims without merit.3. Status and Scope of Domestic Industry (DI):The appellants questioned the recognition of M/s Bradken India Pvt. Ltd. as the DI, arguing that the economic parameters relevant to M/s L&T, who initially applied for the investigation, differed from those of M/s Bradken. The Tribunal noted that M/s L&T had been pursuing the matter since 2012 and had transferred the business related to casting products to M/s Bradken through a business transfer agreement. The DA had examined and recorded the status of DI correctly, focusing on the manufacture of PUC by L&T/Bradken. The Tribunal found no grounds for the appellants' grievance regarding the recognition and analysis of DI.4. Calculation of Dumping Margin and Injury Margin:The DI appealed against the final finding, arguing that the DA committed an error in quantifying the dumping margin and injury margin by comparing the normal value of rough castings with the export price of finished castings. The Tribunal noted that the DA did not provide a clear analysis or specific findings on this claim. The Tribunal directed the DA to re-examine the factual claims made by the DI regarding the weight difference between rough and finished castings and to issue a finding on this aspect. The Tribunal upheld the imposition of AD duty but directed the DA to complete the re-examination within eight weeks and adjust the AD duty accordingly based on the findings.Conclusion:The Tribunal dismissed the appeals filed by the Indian importer and Chinese exporters, upholding the imposition of AD duty. The appeal by the DI was disposed of with a direction to the DA to re-examine the calculation of dumping and injury margins, considering the weight difference between rough and finished castings, and to issue a finding on this aspect. The AD duty imposed and collected as per the final finding and customs notification would continue in the meantime.